Legal Definitions - job security

Job security refers to the likelihood that an employee will retain their position within a company or organization over an extended period. It signifies a reduced risk of involuntary termination, such as being fired or laid off, and can stem from various factors including employment contracts, collective bargaining agreements, company policies, or statutory protections.

• Example 1: Collective Bargaining Agreement

  A manufacturing plant employee is a member of a strong labor union. Their union contract specifies that employees can only be terminated for "just cause," meaning the company must have a valid, documented reason for dismissal, and it outlines a multi-step grievance procedure that must be followed before any termination can occur.

  This employee has significant job security because the collective bargaining agreement provides formal protections against arbitrary dismissal, ensuring due process and requiring the employer to meet a high standard for termination.

• Example 2: Individual Employment Contract

  A newly hired Chief Technology Officer (CTO) signs an employment contract that guarantees a three-year term of employment. The contract also stipulates that if their employment is terminated without cause before the three years are up, they will receive a severance package equivalent to one year's salary.

  The CTO's job security is enhanced by this individual contract, which provides a guaranteed term of employment and financial protection in the event of an early, unjustified termination, reducing the employer's ability to dismiss them without significant consequence.

• Example 3: Government Employment Policies

  An administrative assistant works for a state government department. State civil service rules dictate that employees who have passed their probationary period can only be dismissed for specific, documented reasons related to performance or misconduct, and they have the right to appeal any termination decision through an independent review process.

  This employee experiences a high degree of job security due to the established civil service policies and regulations that protect public sector employees from political or arbitrary dismissals, ensuring a stable work environment based on merit and due process.